Paul Ryan’s 2012 budget, “The Path to Prosperity,” is an impressive document aimed at fostering economic growth and sustainable government. Here are some of the numbers that jump out:
$6.2 trillion — Amount of spending cuts proposed relative to President Obama’s 2012 budget request.
$5.8 trillion — Amount of spending cuts proposed relative to the current CBO baseline.
2008 — Ryan’s plan would bring non-security discretionary spending to below 2008 levels (pre-stimulus, pre-bailout, pre-Obama).
20 percent — Target spending levels (as a percentage of GDP).
$4.4 trillion — Total deficit reduction over 10 years called for under the plan, compared to $4 trillion under Bowles-Simpson and just $1.1 trillion under Obama’s 2012 budget.
$4.7 trillion — Total debt reduction relative to Obama’s budget.
$178 billion — Amount of saving achieved in the Defense Department budget, per the recommendations of Defense Secretary Robert Gates, $100 billion of which would be reinvested, the rest used to reduce the deficit.
$750 billion — Total savings achieved through Medicaid reform, in the form of block grants to states, giving governors greater flexibility in their budgets.
2022 — Year that proposed Medicare reforms would take effect.
25 percent — The top tax rate proposed for both individuals and companies.
18-19 percent — Target revenue levels (as a percentage of GDP), in keeping with historic average levels.
$800 billion — Total amount of tax increases eliminated by repealing Obamacare.
1 million — Private-sector jobs created over the next year.
4 percent — Projected unemployment rate by 2015.
$1.5 trillion — Projected growth in real GDP over the next decade.
$1.1 trillion — Estimate increase in wages over 10 years, yielding an average increase in income of $1,000 per year for each American family.
10 percent — Proposed reduction to the federal workforce over the next three years.
$120 trillion — Total debt reduction by 2050 relative to Obama’s budget.
For a good laugh (or shock), see here.
My only issue with this is the tax cuts. All things being equal, I love the tax cuts. Simplify the code, etc. But it is folly to think that tax cuts will pay for themselves. That's not an absolute truth. I'd rather return to Clinton-era tax levels until we get our fiscal house in order. People also forget how many incomes were taken off the tax rolls entirely under the Bush cuts. A return to the Clinton tax code (with some modifications) would be a better policy... AND give the Democrats an incentive to go along with the spending cuts.
Reply to this commentLinkReport AbuseI thank Rep Ryan for his constant message on this issue.
Reply to this commentLinkReport AbuseRyan/Rubio 2012 has a nice ring to it.
Well and good, but at what point do we start eliminating government departments, e.g. education and energy?
Reply to this commentLinkReport AbuseLet the Dem-agoging begin!
Reply to this commentLinkReport AbuseThis sounds woncerful and of course I would love to see this or something close to it started already but I would second Fredric's sentiments regarding entire Federal departments that frankly are needless redundance and mere beuracracy for beuracracy's sake. Eliminate the Department of education, HUD, Agriculture, Food and Drug administration, FEMA, Dept. of Homeland Security. I would also dissolve any and all financial obligation to the United Nations. Seeing as how worthless and symbolic they are they can merely have our symbolic support without the money.
Reply to this commentLinkReport AbusePaul Ryan's plan should serve as an inspiration to us all. The congress should pass it as is. After all, we need to stop spending money. Much like we needed Health Care. Pass it! We'll find out what's in it, after we pass it. We must! (It's fun playing a Liberal).
Actually Rep Ryan's budget provides an excellent starting point for serious conversation. That is what it's meant to do. And we must keep our eye on what year we end the National Debt.
We cannot pass our debt (it would be bigger by the time we pass it on) to our children and grandchildren. They deserve better than that. We, the selfish gemeration(?), could be the greatest generation. Let's go for it.
Reply to this commentLinkReport Abuse"My only issue with this is the tax cuts"
The lower tax rates are paired with elimination of a ton of deductions, for both individuals and corporations, with expectation of tax revenues remaining about the same.
The Dems over the years have disguised an enormous amount of welfare and corporate welfare as targeted 'tax cuts'. This corporate welfare is a big part of the reason why companies like GE can make big profits and yet have zero tax liability. Ryan proposes to eliminate a lot of this.
By the way, Japan last week lowered their corporate tax rate, leaving the US with the highest corporate tax rate on the planet. Not only does this make it difficult for US companies to compete overseas, it also encourages our companies to create overseas subsidiaries to avoid this tax and, worse, prevents them from bringing home their profits.
Reply to this commentLinkReport AbuseIf Democrats increased spending by $4 trillion in two years ($2 trillion per year), why would they claim it's "extreme" to cut spending by $6 trillion over a 10-year period?
Reply to this commentLinkReport AbuseSamin - If we're going all Clinton then when we adopt his tax rates at the end of his term then how about we adopt his spending as well - $1.9 Trillion.
Reply to this commentLinkReport AbuseThere's an interesting post over at Ace of Spades that y'all should read.
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Reply to this commentLinkReport AbuseSamInVA, you are correct that taking people off the rolls was a mistake, but you really have a short memory if you think the Dems will cut spending in exchange for tax hikes. Don't you remember TEFRA in 1982, when Tip O'Neill and Bob Dole suckered Reagan into a tax hike in exchange for domestic cuts which never materialized? Statists aren't sincere in wanting deficit reduction Sam. The only thing they want to reduce is freedom.
Reply to this commentLinkReport AbusePutting forth a budget for 2012 is a step forward. Bringing the budget to reality is another. I would hate to be on the battlefield with these supposed leaders trying to decide who is the enemy. We need a Paul Revere moment as my better half has let me know. The Dems don't get it and the Repubs haven't joined together as am army ready to attack and conquer.
Reply to this commentLinkReport AbuseWhen we consider that this Government is charged with the external and mutual relations only of these States; that the States themselves have principal care of our persons, our property, and our reputation, constituting the great field of human concerns, we may well doubt whether our organization is not too complicated, too expensive; whether offices and officers have not been multiplied unnecessarily and sometimes injuriously to the service they were meant to promote.
-President Thomas Jefferson, State of the Union Address, 1801
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